Employer plans
As the ACA sticker shock continues to grow, a fresh KFF report released today indicates that individuals on employer-sponsored health insurance plans are also facing steeper costs—although the increases are not as severe as those in the Marketplace.
An examination of present employer plans reveals that the average expense to insure an American family reached nearly $27,000 this year, with typical employee contributions amounting to $7,000 annually. Family premiums have risen by 6 percent, or $1,408, compared to last year, while inflation was only at 2.7 percent and wage growth stood at 4 percent.
KFF pointed out that several factors are driving the escalating costs, with GLP-1 weight-loss medications being a significant contributor. Overall, employers conveyed to the organization their expectations of higher expenses for 2026 plans, as insurers are already requesting double-digit increases for small-group plans.
“There is a subtle alarm signal being triggered. With GLP-1s, rising hospital charges, tariffs, and other influences, we anticipate employer premiums will increase more significantly next year,” stated KFF President and CEO Drew Altman. “Employers lack new strategies to tackle most of the causes of their cost hikes, which might lead to a rise in deductibles and other forms of employee cost sharing once more, a tactic that neither employers nor employees favor but companies turn to as a last resort to manage premium increases.”
Regarding deductibles—the amount individuals pay before their plan’s coverage activates—costs for single coverage have surged 17 percent since 2020. At that time, the average deductible was $1,617 for an insured individual, while this year’s average stands at $1,886. However, deductibles can be significantly higher for employees of small employers. Among those workers, 36 percent faced deductibles of $3,000 or more this year.
